Monday, August 28, 2017

Bounce of Biotechnology Sector

In March I noticed on the blog that the XBI Biotechnology sector, followed by the IBB etf, was once again gaining popularity, but technically it had a $303 resistance that took months to overcome. This week he did it and confirmed the breakout, for a 10% weekly advance, supported by Trump's declarations of smoothing regulations for pharmaceutical products.This has also generally favored the Health XLV sector, which is shaping up to be the leading sector in 2017, leaving it unclear ifTrump's initiative achieves Senate approval these days, which would be the 'green light' required to invest in this sector. If so, I recommend long positions in IBB, but in the short term, because of the usual swings of the Trumponomics. And for those who like the highest risk-reward is the triple-speed LABU, with more than 40% profit (!) this week.One company in the sector that should be followed is the giant Gilead Sciences GILD. One of the lowest Market Cap is Clovis Oncology CLVS, which had an incredible week after the success of its ovarian cancer inhibitor Rubraca, already approved by the FDA, which caused its stock to rise 46.5% on Wednesday, a rise that strengthens more to this sector.

Everything looks favorable for the rise in the Biotech sector to continue. The MACD crossing confirms the rise.